David Kall quoted in Crain's Cleveland Business article, "Tax Tangle"
David Kall, McDonald Hopkins Cleveland managing member and vice chair of the firm's Tax and Benefits Department, was quoted in Crain's Cleveland Business January 6 article "Tax tangle: Small businesses should brace for the possibility of withholdings that follow employees to their homes" by Judy Stringer.
In the article, Stringer considers "one more COVID-fueled operational headache" that small businesses could ace due to House Bill 197's suspension of the "20-day rule" requiring employers to begin withholding tax for a municipaliity when an employee has been working in that municipality for more than 20 days. Under the bill, which passed in March, Ohio employees who work remotely are still considered as working from their employer's place of business for tax purposes.
Stringer writes:
Of course, the impact will not be exclusive to small business. Organizations of all sizes will have to account for their work-from-home employees at a magnitude not experienced previously. But, with scant HR and accounting staffs, smaller companies will face a greater compliance challenge than their larger counterparts, according to David Kall, vice chair of the tax and benefits department at McDonald Hopkins in Cleveland.
"The compliance goes up, but so does the complexity," he said. "You have to figure out the different rates in these various taxing jurisdictions on a paycheck-by-paycheck basis."
To read the full article, including more comments by Kall, visit Crain's Cleveland Business website.